| Project Detail |
Management submits the following proposal and Recommendation for an ADB Loan of one hundred twenty-seven million and two hundred thousand Euro (EUR 127,200,000) and ADF Loan of forty-five million UA (UA 45 million) to the Republic of Kenya to finance the Economic Inclusion and Green Recovery Support Programme (EIGRSP). The EIGRSP is designed as programmatic series of three consecutive General Budget Support Operation covering the fiscal years (FY) 2024/25 -2026/27. The proposed loan is the first of a three-year series designed in response to a request submitted to the Bank by the Government of the Republic of Kenya in August 2024. It was prepared in consultation with the International Monetary Fund (IMF), the World Bank, the European Union, the European Investment Bank, and other development partners (DPs).The OPEC Fund will use the Bank’s policy reform matrix and the same prior actions to co-finance the program with Euro 60 million. The project contributes to climate finance, with 58 million USD of the total approved amount dedicated to adaptation. Project Objectives The overarching development objective of the programme is to strengthen governance reforms to accelerate a resilient, inclusive, and green economic recovery in Kenya. The programme builds on the achievements of the CERSP operation that was approved by the Board in 2021 and that focused on promoting economic governance and economic inclusion and green growth. The Theory of Change outlines priority measures that the Bank Group is supporting to boost Kenya’s development agenda, over the FY2024/25-FY2026/27 period as defined in the Kenya’s MTP-IV (2023-2027).By promoting economic inclusion and green growth, the proposed operation will contribute to reduction in youth unemployment, gender gaps, and Greenhouse gas (GHG) emissions. Reforms that optimize PFM systems that are used to manage public finances have the potential of reinforcing Government accountability and raising levels of fiscal discipline while building the countrys resilience in anti-corruption actions. Beneficiaries Ultimately, the beneficiaries of the proposed operation are the citizens of Kenya who will achieve sustainable livelihood because of the structural measures envisaged in the backdrop of a gloomy global economy and severe climate risks. The MSMEs, especially women led, will benefit from improved policy framework and access to affordable finance. Supported public expenditure efficiency-enhancing reforms and measures that improve the transparency of budget practices have the potential of creating the fiscal space for pro-poor spending through reallocation of resources away from lower priority to higher priority public spending. Finally, climate reforms will help to attract private investments for green growth and job creation for the youth and other vulnerable groups. The direct beneficiaries include: the National Treasury; Public Procurement Regulatory Authority (PPRA); the State Department for Environment and Climate Change; the State Department for Gender and Affirmative Action; the State Department for Youth; the State Department Labour and Skills Development; the State Department for Micro, Small and Medium Enterprise (MSME) Development; the State Department for Social Protection and Senior Citizen Affairs; the Financial Reporting Centre (FRC); the Ethics and Anti-Corruption Commission; and the Ministry of Investments, Trade & Industry. |
